Savers feel squeeze from Christmas spending

The average amount of money savers put away fell more than 8% to just over £2,000 in the first few months of the year as people paid off Christmas debts, according to a study today.

Research showed they wanted to save more and wanted help from the Government to make it easier to put money aside.

Average savings slumped from £2,205 last autumn to £2,023 in the first quarter of 2010, mainly because of Christmas debts, said the study by ING Direct of 1,300 adults.

ING Direct chief executive Johan de Wit said: "After Christmas, you would expect there to be some seasonal adjustment as Britons re-balance their debts, but it's encouraging to see that so many households are looking to re-build their savings buffer for the remainder of the year."